Can My Dad Protect His Homes From Medicaid?

Let’s say your father owns two homes and now must go into a nursing care facility, where it’s anticipated he will have to stay. Let’s say the one home was his primary residence, but the second home he built for his disabled daughter. Unfortunately, the financial burden of his care has now fallen to you and you’re trying to apply for Medicaid, but based on this second home, he’s been denied. What can you do?

There are some ways you can protect the homes and receive the Medicaid he needs, but chances are you will need an elder law attorney.

For example, let’s assume the daughter is under the age of 65 and meets the Social Security definition of disability, meaning she is either receiving SSI or SSD or is eligible for such benefits. With the aid of an attorney, your father can transfer the second home to her without incurring a Medicaid penalty for the transfer.

The transfer of the house should not adversely affect any means-tested benefits such as SSI or Medicaid that the disabled daughter might receive if that house is used as her principal place of residence. The primary home could also be transferred to the disabled daughter in a trust or it could be sold, and the proceeds would be transferred to the trust, without incurring a Medicaid penalty.

The primary home could also be sold to pay the nursing home privately, with a portion of the proceeds transferred into a trust for the benefit of the disabled daughter.

However, to get these transfers done properly, your dad needs the help of an elder care attorney. Bob Michaels of Tacoma Elder Care can help.  Contact Bob today by calling his office at 253-627-1091 to set up a free consultation. Or attend one of his FREE Workshops.